s infected by HIV/AIDS.
Sweden
Aided by peace and neutrality for the whole 20th century,
Sweden has achieved an enviable standard of living under a mixed
system of high-tech capitalism and extensive welfare benefits. It
has a modern distribution system, excellent internal and external
communications, and a skilled labor force. Timber, hydropower, and
iron ore constitute the resource base of an economy heavily oriented
toward foreign trade. Privately owned firms account for about 90% of
industrial output, of which the engineering sector accounts for 50%
of output and exports. Agriculture accounts for only 2% of GDP and
2% of the jobs. The government's commitment to fiscal discipline
resulted in a substantial budgetary surplus in 2001, which was cut
by more than half in 2002, due to the global economic slowdown,
declining revenue, and increased spending. The Swedish central bank
(the Riksbank) is focusing on price stability with its inflation
target of 2%. Growth remained sluggish in 2003. On September 14,
2003, Swedish voters turned down entry into the euro system,
concerned about the impact on democracy and sovereignty.
Switzerland
Switzerland is a prosperous and stable modern market
economy with low unemployment, a highly skilled labor force, and a
per capita GDP larger than that of the big Western European
economies. The Swiss in recent years have brought their economic
practices largely into conformity with the EU's to enhance their
international competitiveness. Switzerland remains a safe haven for
investors, because it has maintained a degree of bank secrecy and
has kept up the franc's long-term external value. Reflecting the
anemic economic conditions of Europe, GDP growth dropped in 2001 to
about 0.8%, to 0.2% in 2002, and to -0.3% in 2003.
Syria
Syria's predominantly statist economy lately has been growing
more slowly than its 2.4% annual population growth rate. Recent
legislation allows private banks to operate in Syria, although a
private banking sector will take years and further government
cooperation to develop. Factors, including the war between the
US-led coalition and Iraq, probably drove real annual GDP growth
levels back below 1% in 2003 following growth of 3.5% in 2001 and
4.5% in 2002. A long-run economic constraint is the pressure on
water supplies caused by rapid population growth, industrial
expansion, and increased
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